Students are struggling with the prospect of paying back student loans.
They’re taking out loans to pay for tuition and books, but there’s little recourse if they’re unable to make their monthly payments.
And that means that they can’t avoid debt altogether, either.
As Canada’s student loan default rate continues to climb, many Canadians are finding themselves in the unfortunate position of having to make difficult decisions.
The problem with making the best out of a difficult situation is that you can end up in a bind, says Andrew Ransom, a finance professor at the University of Ottawa.
The solution is simple: Take action to keep the debt off your plate.
In a country where more than half of Canadians have debt, that’s an easy decision.
But it’s not the best solution.
Here are the 10 reasons why, in the words of economist Robert J. Rubin, it can be a mistake.
You’re going to be in debt long-term 1.
Debt is the default method of financing a lot of Canadians’ lives.
More than half (53 per cent) of borrowers are in the red when it comes to their student loans, according to the latest Canadian Bankers Association survey.
This means that the vast majority of Canadians are going to pay off their debts long-run, meaning they’re going out of their way to keep them in the bank.
The good news is that if you can pay your debts off on a regular basis, the problem goes away.
You don’t have to pay them off all at once.
If you’re a student who’s been paying off student loans for a while, you’re unlikely to have a problem in the short term.
You can, however, be stuck in a situation where you’ll end up paying more on your loans over time.
This is because the amount of interest you’re paying on the debt is usually lower than the amount you’re owing.
The result: you’re likely to have higher monthly payments than if you just paid off your debts.
The same is true for student loans that are not fully discharged.
When your loan is discharged, you’ll have to put money aside in a savings account to make payments, which is a common way for Canadians to deal with the fallout of a major debt discharge.
You may also want to consider making monthly payments, so you don’t end up saddled with a large, unsecured debt load in the future.
In addition, your monthly payments may not cover the cost of interest payments on your debt.
This will affect your ability to refinance your loans, which can affect your credit score.
You might also want a better plan for repaying your loans if you’re going through a bankruptcy.
If your debts are still not discharged, consider applying for bankruptcy protection.
You’ll need to make sure that the government agrees to waive the interest that you’re due.
If they don’t, you might be required to make a down payment of up to 30 per cent of your total monthly income.
If that happens, you may not be able to refinish your student loans or apply for bankruptcy.
Your loan payments will be lower than they should be.
The amount you should be paying on your student loan is a key consideration when you’re making payments on it, says Ransom.
You should pay off your debt as soon as possible.
This could mean making a smaller down payment, or deferring payments until you can afford to make your payments.
There’s no magic number to how much you should pay on your loan.
Some experts recommend starting with 10 per cent.
“I’d like to think that we can get there,” says Rubin.
However, even with a higher down payment and a longer period to pay your debt off, you still should be making payments as quickly as possible to avoid making a significant difference in your monthly payment.
You’ve already had enough.
There are certain things you can do to lower your monthly interest payments.
For instance, you can try to lower the interest rate on your credit cards, which will help you reduce the amount that you have to repay.
Also, you should consider refinancing your student debt if you plan to make monthly payments again.
You need to take out some types of loans to stay afloat.
If the interest on your undergraduate or graduate loans is too high, there’s a good chance you’re already over-borrowing your student debts.
If it’s a post-secondary debt, you have some options.
You could apply for a loan to pay down the interest you already have, or you can apply for some type of repayment plan.
There may also be a low-interest loan you can get through your university.
If none of these options work, you could consider applying to a credit union.
If all of these things don’t work, it may be best to consider a student loan consolidation plan.
This would reduce your monthly monthly payments by up to 25 per cent, allowing you to refit your